What you need to know
- Surface revenue is up 28 percent (year over year).
- Microsoft pulled in $1.74 billion in Surface revenue, up from $1.3 billion last quarter.
- Windows non-Pro licenses saw a massive 34 percent jump.
- Microsoft beat overal Wall Street expectations, again.
Update: Microsoft expects another big quarter (Q1 FY2021) for More Personal Computing (Windows, Xbox, Surface) with guidance revenue between $10.95 billion and $11.35 billion. More specifically, double-digit growth in Windows commercial; mid-teen growth, "solid demand" for Surface hardware; high teen growth for gaming.
Microsoft reported 2020 fiscal year quarter four (FY2020 Q4) results today with healthy revenue growth mostly driven by a surge in work-from-home scenarios and education-related needs.
Surface revenue is up 28 percent ($1.74 billion) compared to the same time last year ($1.35 billion), and up from the previous quarter's $1.34 billion. The increase in sales is still just below Microsoft's prior record of $1.92 billion due to the holiday shopping season.
Microsoft recently announced a refocus of its forthcoming Windows 10X operating system to go to single-screen devices first instead of planned dual-screen ones. The explanation given was the rapidly changing environment of Microsoft's customers, and the company wanting to meet that demand. That decision becomes more clear once this quarter's revenue is taken into consideration.
Windows OEM revenue saw a dip in Pro licenses – down 4 percent – due to weakness in small business demand, likely driven by many companies still operating at reduced staff, or not being able to open at full capacity.
However, the surprising news relates to Windows non-Pro licenses, which saw a massive 34 percent jump driven by high consumer demand. Microsoft cites "remote work and learn scenarios" as the primary driving factors for the sharp rise in Windows sales to OEMs. For context, Microsoft projected low single-digit growth for Windows OEM revenue.
Overall, Microsoft beat Wall Street estimates with a total of $38 billion instead of the projected $36.54 billion by financial analysts. This beating of expectations is a continued and welcome trend with Microsoft, further driving up its surging stock price.
We may earn a commission for purchases using our links. Learn more.
Update 6: Microsoft wants all of TikTok, but Trump's order may interfere
The Financial Times reports that as part of negotiations, Microsoft is now inquiring whether it can buy all of TikTok, instead of just the business in the US., Canada, Australia, and New Zealand. This new plan would include India and Europe (and excluding China).
Apple responds to Project xCloud iOS block, Microsoft kicks back
With Microsoft's Project xCloud streaming platform locked out from iOS devices, Apple doubles down on App Store restrictions.
Fresh Surface Duo renders are here, reportedly coming to AT&T
Microsoft hasn't exactly been camera shy with the Surface Duo, but a new set of renders have leaked that offer an even closer look at the device. Alongside the leaked images, the leaker says Duo will be headed to AT&T in the U.S.
Set up a Surface Pro workstation with one of these external monitors
The Surface Pro is great on its own, but that doesn't mean you can't add one or two external monitors to it and create a sweet battlestation. Here are the best overall picks available now.